Dubai Financial Market, DFM, yesterday announced that it plans to implement an enhanced Pre-closing session arrangement as well as Trading At Last session, TAL, as of June 4th. The reshaped Pre-closing session will provide a defined structure, organising processes of order input, order cancellation and matching, while the five minutes long TAL enables investors to place their orders according to the closing price, Theoretical Auction Price, calculated by the system.
DFM initially adopted the Pre-closing Session in May 2014. The new arrangements are the outcome of comprehensive discussions with various market participants as part of DFM's constant efforts to further enhance market infrastructure in line with international best practices.
As part of the new enhancements, the Pre-closing Session will run between 13:45 and 13:55:20 and will include three stages, namely; the order input period, the no cancellation period and the matching period. As is the case since this mechanism was initially introduced, the Pre-closing Session will be an order accumulation period as brokers and investors can enter orders without being executed until the pre-closing matching. However, the new arrangement will include a defined timeframe that organises the processes of placing new orders, amendments and order cancellation.
The TAL will run between 13:55:20 and 14:00:20 as brokers and investors will be able to place executable orders, whether new or previously placed orders, as per the closing price only, and the previous closing price is to be applied if no closing price is available during the same session.